The stock of CoreWeave (NASDAQ: $CRWV) is down as much as 10% after the artificial intelligence (A.I.) data centre operator increased its capital expenditures.
The A.I. infrastructure provider reported an earnings per share (EPS) loss of -$1.12 U.S. versus a loss of -$0.90 U.S. that had been expected among analysts.
However, revenue of $2.08 billion U.S. surpassed Wall Street forecasts of $1.97 billion U.S. The company said its sales more than doubled in the quarter from $981.8 million U.S. a year earlier.
The company ended the quarter with 3.5 gigawatts of total contracted power, along with a revenue backlog that totaled $99.4 billion U.S.
“We have reached hyperscale,” CoreWeave’s co-founder Michael Intrator said on a conference call with analysts and media.
Intrator added that the company now has 10 clients that have committed to spending at least $1 billion U.S. on its products. In 2024, 62% of the company’s revenue came solely from Microsoft (NASDAQ: $MSFT)
CoreWeave is forecasting $2.45 billion U.S. to $2.60 billion U.S. of revenue for the current second quarter. The middle of that range, $2.53 billion U.S., is below Wall Street forecasts of $2.69 billion U.S.
For all of 2026, CoreWeave maintained its revenue guidance that calls for $12 billion U.S. to $13 billion U.S. in sales.
CoreWeave’s expenses also remain an issue for Wall Street with the company reporting that its technology and infrastructure costs rose 127% in the quarter to $1.27 billion U.S.
CoreWeave is racing top cloud computing providers such as Amazon (NASDAQ: $AMZN) to open data centres filled with Nvidia (NASDAQ: $NVDA) microchips and processors.
In the first quarter, CoreWeave said it raised $8.5 billion U.S. of new debt. It closed the quarter with $25 billion U.S. in total debt.
Management also raised their capital expenditure forecast for this year.
The company now projects $31 billion U.S. to $35 billion U.S. in 2026 capital expenditures, up from $30 billion U.S. to $35 billion U.S. that it announced previously.
However, Intrator said on the earnings call that CoreWeave’s annualized revenue should exceed $30 billion U.S. by the end of 2027.
CRWV stock has gained 222% since going public in March 2025. The shares are currently trading at $128.84 U.S.
